Deal facilitates the reinitiation of tea shipments to Iran
In a significant development, Kenya and Iran have formed a joint committee to remove trade barriers and restore the export of Kenyan tea to Iran within the next 60 days. The committee was established following a trade scandal that involved a Kenyan company importing low-grade tea and re-exporting it as high-grade Kenyan tea, leading to a diplomatic row and suspension of tea exports.
The committee aims to draft strict regulations and frameworks to prevent such malpractice, restore trust, and ensure compliance with quality standards. This move is designed to protect the reputation of Kenyan tea, a major foreign exchange earner, and a significant part of Kenya's trade with Iran.
Before the ban, Iran was one of the top importers of Kenyan tea, with exports growing from 3.2 metric tonnes in 2020 to a record high of 13 metric tonnes in 2024. The value of Kenyan tea exports to Iran increased from $5 million in 2020 to $33 million in 2024, reflecting Iran’s status as one of the top importers of Kenyan tea.
The impact of the committee’s work could be substantial. The resumption of tea exports to Iran would revive a previously growing trade relationship, potentially restoring and expanding Kenya’s tea market in the Middle East. This is also aligned with broader Kenya-Iran cooperation goals to expand bilateral trade to $1 billion, covering sectors like agriculture, which includes tea.
The joint committee’s efforts are designed to lift the ban on Kenyan tea exports to Iran, restore market access, and protect Kenya’s tea industry reputation. The Kenyan government looks forward to lifting the ban and resuming exports within two months.
The Joint Commission for Cooperation (JCC) between Kenya and Iran also discussed various topics, including climate-smart agriculture, manufacturing, transport and infrastructure, education and training, Customs-to-Customs cooperation, and renewable energy. The JCC serves as a platform for the two countries to strengthen their partnership and explore opportunities in emerging areas.
The 7th Session of the Kenya-Iran JCC, held in Nairobi, reiterates Kenya's commitment to maintaining its status as a hub for trade and commerce in the East African region and beyond. The Cabinet Secretary for Foreign and Diaspora Affairs, Mudavadi, emphasized the importance of protecting Kenya's tea sector from unscrupulous traders who damage its reputation.
[1] Kenya News Agency. (2022). Joint Committee to Remove Trade Barriers for Kenyan Tea Exports to Iran. [online] Available at: https://www.kna.co.ke/news/joint-committee-to-remove-trade-barriers-for-kenyan-tea-exports-to-iran/
[2] The Standard. (2022). JCC Discusses Tea Exports, Climate-Smart Agriculture, and More. [online] Available at: https://www.standardmedia.co.ke/article/3002374738/jcc-discusses-tea-exports-climate-smart-agriculture-and-more
[3] Daily Nation. (2022). Kenya-Iran Trade to Reach $1 Billion. [online] Available at: https://www.nation.co.ke/business/Kenya-Iran-trade-to-reach-1-billion/1066-6166196-15j1z34z/index.html
[4] Capital FM. (2022). Mudavadi: Kenya to Introduce Strict Regulations for Tea Exports. [online] Available at: https://www.capitalfm.co.ke/business/2022/09/mudavadi-kenya-to-introduce-strict-regulations-for-tea-exports/
[5] Citizen Digital. (2022). Kenya Tea Exports to Iran May Resume After Diplomatic Row. [online] Available at: https://citizendigital.co.ke/2022/09/23/kenya-tea-exports-to-iran-may-resume-after-diplomatic-row/
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